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Index awash in losers despite Vietcombank debut
The VN-Index lost another 12.13 points yesterday to close at 448.29, a drop of 2.63 per cent, as the strong debut of Vietcombank as a listed share was unable to overcome a wave of losses in other codes on the HCM City Stock Exchange.
Boosted by Vietcombank’s opening-day buying volume of about 10 million shares, trading volume on the southern bourse rose by 39 per cent over Monday’s session to 37.5 million, worth a combined VND1.4 trillion (US$78.7 million).
Vietcombank (VCB) rose to the ceiling price of VND60,000 per share, but the vigorous debut failed to prop up the market, as decliners outnumbered advancers overall by 138 to 17.
The bank could have sold even more shares, according to the head of HCM City Banking University’s business administration department, Le Tham Duong, but its listed shares representing only 9.8 per cent of its equity. A listing ratio of 20 per cent would be more stimulating by helping assure the rights and interests for small stakeholders, he said.
On the Ha Noi Stock Exchange, the HNX-Index closed at just over 149 after losing 3.09 per cent on the day. The value of the day’s trades on the northern market reached nearly VND661 billion ($37.1 million) on a volume of 18.8 million shares.
Sai Gon-Ha Noi Securities Co deputy director Ho Ngoc Viet Cuong said capital flows into the stock market had slowed over the past two weeks, but affirmed that investors were maintaining cash balances in their accounts, waiting for opportunities.
Vincom Securities Co suggested investor caution until the market moved out of the 440-470 range, remarking that investors should monitor the prices of shares like Bao Viet Holdings (BVH), Sacombank (STB), PetroVietnam Finance (PVF), Saigon Securities Inc (SSI) and Vietcombank (VCB) as the best indicators of market developments.
VNDirect Securities said banking and financial shares, which maintained good liquidity and promised satisfactory second-quarter business results, were expected to prop up investor sentiment.
Banking shares continued to show heaviest activity on both markets yesterday, with Sacombank (STB) and Asia Commercial Bank (ACB) generating orders for a combined 12.3 million shares, or 22 per cent of the day’s total volume.
Foreign investors were net buyers of 3.1 million shares yesterday on the HCM City exchange, with a net value of VND158.4 billion ($8.9 million) and an overall volume of 8.6 million shares.
In Ha Noi, overseas clients were responsible for 24.7 million trades, worth a combined VND1 trillion ($56.2 million).
The unlisted public company market (UPCoM) continued its losing ways yesterday, as the UPCoM-Index slid another 5.08 per cent to end at 77.67 points. Truong Phu Co (TGP) bucked the trend, gaining slightly 0.6 per cent.
Trading value slumped 78 per cent from Monday’ session to just VND870 million ($49,000) on a volume of only 54,800 shares. Market leader Tan Viet Securities (HIG) accounted for 31 per cent of the volume with 17,200 shares changing hands.
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Vietcombank shares make impressive gain on first day |
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Vietcombank (VCB) became the 182nd company listed on the board of the HCM City Stock Exchange yesterday.
When VCB issued its initial public offering (IPO) in late 2007, it became the first State-owned bank that turned into a joint-stock status. VCB closed yesterday at VND60,000 (US$3.8), reaching the ceiling rate of 20 per cent from the reference of VND50,000, while the VN Index fell more than 12 points. The bank has a charter capital of more than VND12.1 trillion (US$673 million). The State still holds a 90.72 per cent stake, leaving the remaining 9.28 per cent, or almost 112.3 million shares to list.
HoSE’s general director Tran Dac Sinh said foreign investors could own all of the remaining listed shares. Under current regulations, foreign investors are allowed to account for 30 per cent of the total shares of a listed bank. VCB Chairman Nguyen Hoa Binh said the bank would increase its charter capital to VND13.223 trillion by issuing new shares to existing owners, including State shareholders. The issue, however, would not help Vietcombank satisfy the requirement that a 20 per cent stake should be owned by the public.
Binh said his bank would sell shares to strategic partners to reach the required rate. VCB represents a 10 percent share of Viet Nam’s banking system’s lending market, 12 per cent of capital mobilisation, 23 per cent of international clearance and 55 per cent of card payment values.
VCB accepts more international cards, including Visa International, MasterCard International, JCB, Diners Club and China Unionpay, than any others in the country. It is the only bank in the country that accepts American Express. For the first half of the year, the bank, which runs a network of 64 branches and 200 transaction offices nationwide, earned VND2.45 trillion, fulfilling 74 per cent of the year’s target. Its total assets were valued at VND222 trillion at the end of last year. |
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